Borr Drilling (BORR) Q2 2024 earnings summary

Executive summary

• Q2 2024 operating revenues reached $271.9 million, up 16% sequentially, with adjusted EBITDA of $136.4 million, up 17%, and net income of $31.7 million, a 120% increase from Q1 2024.

• All delivered rigs are contracted, with 73% of 2025 capacity secured; Vali delivery expected mid-August 2024 and Var on schedule for late Q4 2024.

• Fourteen new contract commitments in 2024 added over 3,500 backlog days and $651 million in potential revenue.

• Quarterly dividend doubled to $0.10 per share, annualizing to $100 million; $100 million remains under share buyback authorization.

• 2025 contracted coverage stands at 73%, with high revenue visibility due to increased day rates.

Financial highlights

• Q2 total operating revenues were $271.9 million, up 16% sequentially; adjusted EBITDA was $136.4 million, up 17%.

• Net income for Q2 was $31.7 million, more than doubling from Q1.

• Operating income reached $104.5 million, up 23% from the previous quarter.

• Cash and cash equivalents at quarter-end were $193.5 million; total available liquidity was $344 million.

• Total equity increased to $999.2 million at quarter-end.

Outlook and guidance

• Full-year 2024 adjusted EBITDA guidance reaffirmed at $500–$550 million.

• 2025 expected to see increased free cash flow due to lower CapEx and higher average day rates.

• 2024 fleet coverage at 92% with an average dayrate of $135,000; 2025 coverage at 73% with $148,000 average dayrate.

• Market expected to remain tight for premium assets, supporting strong pricing.